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I suspect that Lee Kuan Yew view is true for most SWF with greater
than $100 billion

May 9, 2011
GIC's 30-year outlook 'less benign': MM Lee

Government of Singapore Investment Corp (GIC), Singapore's sovereign
wealth fund, expects the investment outlook in the next 30 years to be
'less benign', or less favourable, Chairman Lee Kuan Yew (above) said.
-- PHOTO: PAP


GOVERNMENT of Singapore Investment Corp (GIC), Singapore's sovereign
wealth fund, expects the investment outlook in the next 30 years to be
'less benign', or less favourable, Chairman Lee Kuan Yew said.

The fund's returns have been comparable with the annual 10.2 per cent
gain in equities since its inception in 1981, said Minister Mentor Lee.

'The next 30 years look challenging,' Mr Lee said at a speech in
Singapore marking the fund's 30th anniversary.

GIC must be prepared to make 'unconventional' decisions to bolster
returns, Mr Lee said.

'As GIC grows larger and more established, the impetus to follow
conventional practices will grow stronger. GIC must develop the
capacity and courage to make the right decisions, thinking in depth
and foresight for what works best.'

GIC, manager of more than US$100 billion (S$124 billion) of
Singapore's reserves that invested in companies including Citigroup
and UBS, is seeking to boost assets to tackle future crises and meet
the country's long-term spending needs. GIC is ranked the world's
eighth-largest state investment company by Sovereign Wealth Fund
Institute. -- BLOOMBE